Question 1: I sold my CBA shares in December at $107.30 after holding them for 30 years. Today I bought half of them back @ $102.19. Will I be eligible for the half year dividend ? Will I qualify for the buy-back if I hold these shares in our SMSF?
Answer: For the CBA shares you hold and those you bought back today, you will be eligible for the half year dividend of $2.10 per share. Shares purchased on the ASX before CBA’s ex-dividend date of Wed 22 February qualify for the dividend.
The buyback is an ‘on-market’ buyback (i.e. the Bank buys the shares directly on the ASX through a broker). There is no direct entitlement for individual shareholders.
Question 2: I am in CBA’s dividend re-investment plan (DRP). Can I change my participation, and if so, when do I need to do it by? Will the shares be issued at a discount? How do they set the price for the shares?
Answer: Yes, you can change your participation at any time by contacting CBA’s registry, Link Market Services. If you want to change it ahead of the current dividend (to be paid on 30 March), you need to do so by COB on Friday 24 February.
The issue of shares under CBA’s DRP is governed by the Plan’s rules. For the next dividend, the Bank has determined that no discount will apply. In terms of the issue price, this will be the average CBA trading price on the ASX over the period commencing 27 February and ending 24 March (4 weeks).
Question 3: Are JB Hi-Fi shares now a sell following the release of its January sales report?
Answer: JB Hi-Fi said it was “pleased” with its January trading performance, although the market took it a bit more negatively. JB H-Fi reported sales growth of just 1.5% for the JB Hi-Fi branded stores (compared with January 2022) and 0% for Good Guys. But both sales results were up considerably on the pre-Covid levels of January 2020.
My sense is that JB Hi-Fi will trade in a range, depending on the news about the economy and retail sales. It is unquestionably “best in class”. For traders, a “buy” in the low $40s and a sell in the high $40’s. For portfolios, a hold.
Looking at the brokers, they are marginally bearish on JB hi-Fi – current consensus is $46.28, about 3.2% higher than the last ASX price of $44.83. Citi is the outlier and “bull” with a target price of $55.00.
Question 4: What is the broker forecast now for Pilbara Minerals (PLS)?
Answer: According to FN Arena, the consensus target price is $4.88, just 3.5% higher than the last ASX price of $4.72. But there is a huge divergence in opinion amongst the major brokers. Macquarie is the “bull” with a target of $7.50, while Credit Suisse is the “bear” with a target price of just $3.10.
Pilbara reports its half year results on 24 February. It could include the payment of a maiden dividend.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.